Belgian REIT Cofinimmo has purchased two nursing and care homes in Germany for €26.5 mln.
'Both transactions are in line with the group’s strategy to expand our healthcare portfolio in the Netherlands and Germany, where rental yields and lease length form an attractive combination for Cofinimmo and its shareholders,' commented Jean-Edouard Carbonnelle, Cofinimmo CEO. 'This strategy also aims at spreading risks associated with our tenants' activities over different countries and markets.'
The 6,466 m2 Gelsenkirchen Bismarckpark nursing and care home, located in Gelsenkirchen, North RhineWestphalia, has been acquired for €11.4 mln. Built in 1998, refurbishment is now planned to meet the region's required standards, tranforming double rooms into single rooms.
The vendors were not named.
Cofinimmo and the operator will each finance part of the works. Following the refurbishment, the building's capacity will decrease from 133 to 109 beds. It is operated by Curanum AG München, a subsidiary of the Korian Group, with which Cofinimmo signed a double net lease for a fixed 17-year period, with an option to extend for ten years. The initial gross rental yield amounts to 6.2 %.
Cofinimmo also signed an agreement for the acquisition of the Azurit Seniorenzentrum Riesa’ nursing and care home, currently under construction, for €15.1 mln. The asset is located in the town of Riesa in Saxony and will comprise 138 beds on an area of 6,450 m2.
Delivery is expected during the second quarter of 2018. It will be let to the operator Azurit Rohr GmbH under a double net
lease for a period of 25 years with an option for an additional 5-year extension. The initial gross rental yield will amount to 5.7%.
After the deals, Cofinimmo's healthcare investments total €94.5 mln.
